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Tokyo Olympics 2020 delayed due to COVID 19 and its implications on marketing

Due to COVID 19, many of the sporting events have come to a standstill causing millions of industries to face the brunt of the decision. This write-up presents some insight into the people most affected by this pandemic.

Since the last quarter of 2019, the world has been under the slowly engulfed by a pandemic of massive proportions. People are being asked to stay home and maintain social distancing to stay safe. Since public gatherings are being canceled in the wake of the emergency, most of the sporting events like the USL Championship or NBA being canceled in the country.

However, the biggest hit in the list of postponements is probably the 2020 Summer Olympics. The event, to be organized in Japan, has been pushed back to August 2021 – even if the event holds the title of ‘2020’. The organizers, sponsors, and promotional staffing companies associated with the event understand the enormity of the step. In the past, the Olympic Games have been postponed during the World Wars that show the global impact of the virus.


Financial implications of the decision

This decision has come with severe financial implications for many including the Japanese government hosting the event as well as the International Olympic Committee (IOC). On one hand, Japan has spent around US$ 28 billion in building a world-class infrastructure and sporting facilities for the games. On the other hand, the IOC is left with only US$ 2 billion in reserve to sustain itself till the next payday along with insurance to protect against potential interruptions.

The Olympics getting shelved for a year would be mostly suffered by athletes. Many of them have put their lives, education, and family on hold to give their best shot to the games. For many, this could be the last time they could perform in the professional arena. What the future holds these contestants is a big question?

What does it mean for the sponsors?

Olympics are one of the biggest sporting events in the world, witnessed by millions of people all over the world. With such huge viewership, this event is one of the heavily sponsored events in the world. According to the official records available, Eurosport’s owners, the Discovery Channel, paid close to US$ 1.4 bn to air Olympic Games from 2018 to 2024 across Europe. On the other hand, NBC has paid the IOC US$ 7.75 billion for airing rights till the 2032 Summer Games.

Many huge corporations have signed Olympic sponsorship deals in the past years in a build-up for the event. Additionally, many small and big enterprises have timed their product launches, promotional activities, and other events with these sporting events. These are years of hard work and effort that might go into vain if the situation does not change for good.

Is the future bleak for the industry in the coming years?

Well, there are a lot of missed scopes for the industries planning and syncing their future events with the Olympics. This would impact the associated agencies, organizers, promotional staffing companies, and the entire ecosystem of businesses connected. But it is not a missed scope?

Instead, businesses can take this opportunity to connect and learn with their consumer base and deliver those needs when the situation is more favorable. It is time to put the thinking caps on and create strategies to make a positive impact on the economy when things get back to normal.

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